Small business registration
The NSW Government has introduced a policy requiring government agencies to pay small businesses within 30 days of receiving a correctly rendered invoice.
This will improve support to small business by ensuring they are paid in a timely manner.
How it works
If a NSW government agency does not pay a small business within 30 days of receiving a correctly rendered invoice, the agency must pay a penalty interest payment on the amount owed if interest exceeds $20.
The requirement to pay interest to small business is effective from 1 January 2012.
All NSW government agencies will report their payment progress and performance on a quarterly basis to the Department of Finance, Services and Innovation.
These reports will be published on the Department of Finance, Services & Innovation website.
This policy is outlined in NSW Treasury Circular 11/12 Payment of Accounts and NSW Treasury Circular 11/20 Implementation of Penalty Interest on Late Payment of Accounts.
NSW Government has a dedicated on-line small business resource and support centre on the Smallbiz website where there is more information on the 30 day payment terms initiative.